According to the International Monetary Fund's (IMF) assessment, the increase in potential economic growth in Azerbaijan and Kazakhstan is mainly linked to rising capital investment and investment in capital-intensive sectors, Deputy Director of the IMF's Middle East and Central Asia Department Roberto Cardarelli said during the presentation of the regional economic outlook, APA-Economics reports.
According to him, a new study conducted by the Fund shows that potential economic growth rates have increased in the countries of the Caucasus and Central Asia. In some countries, the increase ranges from 0.5 percentage points to 0.75–1 percentage point.
Roberto Cardarelli noted that the reasons for the increase in potential growth vary across countries.
"In oil-exporting countries such as Kazakhstan and Azerbaijan, this is mainly related to capital deepening, meaning greater investment in capital-intensive sectors," the IMF official emphasized.
According to him, in more diversified oil-importing economies such as Armenia and Georgia, potential growth has mainly been driven by an increase in total factor productivity (TFP).
In these countries, the influx of skilled labor following the Russia-Ukraine war and the reallocation of resources to rapidly developing sectors, particularly the information and communication technology sector, have supported economic productivity.
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